Brief introduction to the phenomenon of real estate crowdfunding in Spain

Abstract

Real  estate  crowdfunding is  an  investment crowdfunding modality  characterized in  that  the  project  for which participative financing is  requested is  a real estate  business project  for  the  acquisition, construction or rehabilitation of  properties   for  leasing  and  / or  subsequent sale.  It  can  be  financed by  means of  loans  or by  subscription of  shares  or  participations, in  the  case  of  intermediated  crowdfunding subject to the Law of Promotion of Business Financing. It  can also  be financed through contracts of  accounts in participation in the  case  of  direct crowdfunding, in  which promoter and  platform are the  same  business entity, and  the platform does  not  have  the  status of  participatory financing platform of artículo 46  of  the aforementioned Law,  but  it  comes to  consist of  the  web  page (and  its  computer program) of  the  real estate  developer.  In intermediated real es- tate  crowdfunding, which is  regulated  by  the  legislator,  self-promotion is  limited to avoid  conflicts of  interest  with investors and  to  guarantee the  neutrality of  the PFP. The  developer  must assure  the  investors the  acquisition of  the  property,  and the  provision of legal guarantees not  present  in other  projects  is possible, such as the mortgage  on  the acquired property,  or the preventive annotation of refactionary credit,  the  insurance of defaults of the  rent  rents  or the  requirement of guarantees to tenants beyond  bail.